The theme of Jeremy Hosking's presentation was how the money management industry can produce opportunities for value investors. There is a limited amount of opportunity in markets and we are all fighting over it, Hosking said. It helps to have someone making opportunity at the poker table and that is a role often played by institutional asset managers. Institutional funds cause:

- Agent principal damage via high fees
- Diseconomies of scale. The bigger the pool of assets the harder to outperform
- Product proliferation (often at the top of the market)
- Herding by fund managers is a disservice to the client

And while Hosking talked about herding, it is slightly ironic that he then went on to pitch AIG. While the bull case on the company makes sense, it is held by many prominent US hedge funds as a top long and could be considered a 'herding' pick in and of itself. But to be fair, perhaps it's not a consensus long over in the UK.

The theme of Jeremy Hosking's presentation was how the money management industry can produce opportunities for value investors. There is a limited amount of opportunity in markets and we are all fighting over it, Hosking said. It helps to have someone making opportunity at the poker table and that is a role often played by institutional asset managers. Institutional funds cause:

- Agent principal damage via high fees
- Diseconomies of scale. The bigger the pool of assets the harder to outperform
- Product proliferation (often at the top of the market)
- Herding by fund managers is a disservice to the client

And while Hosking talked about herding, it is slightly ironic that he then went on to pitch AIG. While the bull case on the company makes sense, it is held by many prominent US hedge funds as a top long and could be considered a 'herding' pick in and of itself. But to be fair, perhaps it's not a consensus long over in the UK.

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